9911796707
TMI Blog2011 (3) TMI 974X X X X Extracts X X X X X X X X Extracts X X X X ..... at market price cannot be computed for want of details, for which the assessee alone is responsible. Therefore, the addition is called for and it is justified - Therefore, as a fair measure of price difference, we modify the Arms Length Price adjustment factor to 20 per cent of the operating cost in place of 20.68 per cent of the operating cost adopted by the lower authorities - With this nominal modification, the issue of Transfer Pricing is disposed of. - IT Appeal No. 1184 (Bang.) of 2010, - - - Dated:- 14-3-2011 - O.K. Narayanan, P. Madhavi Devi, JJ. H.V. Gowthama for the Appellant Ranmoy Das for the Respondent ORDER O.K. Narayanan, Vice President 1. This appeal is filed by the assessee. The relevant as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oped etc., and, therefore, the additions made by the TPO as shortfall adjustment under section 92CA is to be deleted. 4. We considered the contentions in the light of the details submitted by the assessee's representative, assessment order, the directions of the Disputes Resolution Panel and the order of the Transfer Pricing Officer. With reference to the international transactions of software, the assessee has agreed with its associate concern's formula of cost plus profit. The profit factor has been agreed to be 10 per cent. But on a detailed study of the activities carried on by the assessee company and its working results and the results of the comparable cases, the TPO came to a finding that the operating margin (ALP margin) worked ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the assessee alone is responsible. 6. For the reasons already stated above, along with the findings of the Transfer Pricing Officer and the Dispute Resolution Panel, we find that the price declared by the assessee for its international transactions cannot be accepted as Arms Length Price. Therefore, the addition is called for and it is justified. 7. Now regarding the quantum of addition, the Transfer Pricing Officer has worked out the operating profit at 20.68 per cent of the operating cost. We feel that a nominal modification is called for in this rate of operating profit, accepting certain valid contentions of the learned representative regarding the competence level of its employees; the remuneration payable to them and the eff ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
